Compute her net income from the business

Assignment Help Accounting Basics
Reference no: EM133146114

Question - Christine opens a retail store. Her sales during the first year are $500,000?, of which $40,000 has not been collected at? year-end. Her purchases are $250,000. She still owes $35,000 to her? suppliers, and at? year-end she has $55,000 of inventory on hand. She incurred operating expenses of $120,000. At? year-end she has not paid $30,000 of the expenses.

Required -

a. Compute her net income from the business assuming she elects the accrual method.

b. Compute her net income from the business assuming she elects the cash method.

c. Would paying the $30,000 she owes for operating expenses before? year-end change her net income under accrual method of? reporting? under the cash? method?

Reference no: EM133146114

Questions Cloud

Building strong relationships and networks : How can Building strong relationships and networks help you in business
What is enterprise P-B ratio of ABC : In the income statement it reported $560 million in sales. The 90 million shares of the firm traded at $8 each. What is enterprise P/B ratio of ABC
Explain the correlation : A. In one sentence or two explain in your OWN words ONE of the following: Data Dredging, Causation, Reverse Correlation, margin of error (acceptable error rate)
What was the enron scandal about : What was the Enron scandal about? Be specific in describing some of the things that Ken Lay, Jeffrey Skilling, and Andrew Fastow did in terms of creating the et
Compute her net income from the business : Christine opens a retail store. Her sales during the first year are $500,000?, Compute her net income from the business
What is the value of gdp : The following data were recently obtained from the BEA; values are in billions of dollars:
Develop a critical understanding of the fundamental concepts : Develop a critical understanding of the fundamental concepts, terminology and techniques in modern electronic system design and engineering.
Create a learning organization : Explain the role that organizational learning and creativity play in helping managers to improve their decisions.
Briefly describe your dream job : 2. List at least two directions outside your primary career choice that you would consider for employment-at least on a short-term basis. To develop this answer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why would a publicly traded company prefer to pay

Why would a publicly traded company prefer to pay a newly acquired company in only stock, in only cash, or decide to use both?

  What is the connection between cost of the ring major

what is the connection between cost of the ring major materialslabor overhead and the items price to a

  Do a cash budget for January and February

Sales of marketable securities in January are expected to realize $13,200 in cash. Do a cash budget for January and February

  What is the your annual payment

The loan terms included annual payments for a 30-year term at an interest rate of 46 percent. What is the your annual payment

  What are effects of the annuity on Connor final tax return

Connor purchased an annuity that was to pay him a fixed amount each month for the remainder of his life. What are effects of annuity on Connor final tax return

  Find the target selling price using the variable-cost

Vaughn Manufacturing has determined the following per unit amounts: Find the target selling price using the variable-cost approach

  What was the required investment for goates companys

each of the following scenarios is independent. assume that all cash flows are after-tax cash flows. 1.southward

  What is the appropriate interest entry on December

The lease payments are due each January 1, beginning in 2018. What is the appropriate interest entry on December 31, 2018

  How much net income would they have recorded

If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May

  What is Luke correct ending inventory balance at December

Luke Corp's inventory records indicated a balance of $632,000. What is Luke's correct ending inventory balance at December 31, 2022

  Discuss the initial budget process and the variances

What are the changes you think the company should make based on the variance analysis? What will the changes accomplish?

  Provide a theoretical analysis of fijian business accounting

Provide a theoretical analysis of Fijian business accounting system for improved care for others and to identify issues in the further development

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd